Amendments in TDS rule in budget

There are some amendments in TDS rules in union budget 2014 which are as under.

Section 194LC
 In section 194LC of the Income-tax Act, with effect from the 1st day of October, 2014,––
(A) in sub-section (1), after the words “by a specified company”, the words “or a business trust”shall be inserted;

(B) in sub-section (2),––
(a) in the opening portion, after the words “by the specified company”, the words “or the business trust” shall be inserted;

(b) for clause (i), the following clause shall be substituted, namely:––
“(i) in respect of monies borrowed by it in foreign currency from a source outside India,—
(a) under a loan agreement at any time on or after the 1st day of July, 2012 but before the 1st day of July, 2017; or

(b) by way of issue of long-term infrastructure bonds at any time on or after the 1st day of July, 2012 but before the 1st day of October, 2014; or

(c) by way of issue of any long-term bond including long-term infrastructure bond at any time on or after the 1st day of October, 2014 but before the 1st day of July, 2017, as approved by the Central Government in this behalf; and”

Section 194A
 In section 194A of the Income-tax Act, in sub-section (3), after clause (x), the following clause
shall be inserted with effect from the 1st day of October 2014, namely:––
“(xi) to any income by way of interest referred to in clause (23FC) of section 10.”

Section 194DA
After section 194D of the Income-tax Act, the following section shall be inserted with effect from the 1st day of October, 2014, namely:––

“194DA. Any person responsible for paying to a resident any sum under a life insurance policy, including the sum allocated by way of bonus on such policy, other than the amount not includible in the total income under clause (10D) of section 10, shall, at the time of payment thereof, deduct income-tax thereon at the rate of two per cent.:

Provided that no deduction under this section shall be made where the amount of such payment or, as the case may be, the aggregate amount of such payments to the payee during the financial year is less than one hundred thousand rupees.”.

Section 194LBA
  After section 194LB of the Income-tax Act, the following section shall be inserted with effect from the 1st day of the October, 2014, namely:––

“194LBA. (1) Where any distributed income referred to in section 115UA, being of the nature referred to in clause (23FC) of section 10, is payable by a business trust to its unit holder being a resident, the person responsible for making the payment shall at the time of credit of such payment to the account of the payee or at the time of payment thereof in cash or by the issue of a cheque or draft or by any other mode, whichever is earlier, deduct income-tax thereon at the rate of ten per cent.

 2- Where any distributed income referred to in section 115UA, being of the nature referred to in clause (23FC) of section 10, is payable by a business trust to its unit holder, being a non-resident, not being a company or a foreign company, the person responsible for making the payment shall at the time of credit of such payment to the account of the payee or at the time of payment thereof in cash or by the issue of a cheque or draft or by any other mode, whichever is earlier, deduct income-tax thereon at the rate of five per cent.”.
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